Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1887-05-17

We may again meet the Joint committee on
this subject.
We are, dear sir, yonrs faithfully,
EDWARD THOyNr0N,
:. \. BEAITHWAITE
.Nr. ClGrics i. 6tuat OoiImaa Joiai
Committee.
MEMORANDUM.
/. That he interest accrmnc from July
I, 1857, on the coneol bonds b. reduced TO
per cent. per annum during the whole
Period Of their currency.
.. That the interest accruing from July
I. 1887, on The 10 10 bonds be reduc Il to
u per cent. per- annum during the whole
period Of their currency.
8. That the overdue coupons on the con-
sols and 1910 bouds up 10 July ]. 1881, in
elusive, be discharged as TO such part there
~ as The available resources OF the state
are sufficient to provide in cash at the rate
Of 30 cents on the dollar, aud D. renaincri
be fundtd at - per cent. Of the face value
into new secured bonds bearing per cent.
interest during the whole period OF their
currency, and 10 run for period 10 be ar.
ranged.
4. That the principal Of the n,w bonds
and Of tie conSols aud l0.A0 bonds be- re-
GCCmablc al tie option oi The State either
ly purchase or drawings by ballot, and in
Tie latter case
(a) As TO the 3 pcr cent. bonds by pay
mont Of - per cent. Of their face value.
(bl As 10 TIE y pcl cent. bonds by pay.
mcut OF C3 per cent OF their face yIlue.
;. That after the expiration Of five years
an accumulative sinking fund Of per
cent. per annum, 10 De increased alter a
nutnCr period of five years 10 per cent.
rer annum, on TIE amount OF the cOosols,
l0.40's. aud new bonds be provi 'cd iOr
redemption 10y drawings at - aud Gj re-
.rcclivCly Is above mentioned.
&. Thai the arrear interest on the Vrffad-
"a debt from lSsj up tO July ], lSsi, in
elusive, be funded under the RiddleberSec
acts at The rate OF 80 cc0ts on the d0lllr.
:. It is desirable, q, well IN the interests
ot the state rs oi the hondhOlders. thlt tIc
bonds beld by t1r Commissioners ~ the
Siuling Fund ard by the Board OF Pdbhc
Works be cancelled.
:. BY the above proposal the Tx rc- -cjyt-
De coupon bondhollef- would Immcdlile-
IS ard ON redemption even assuming That
the whole u the overdue coupons were
unGtd INTO new bond. and 10 part Dis
charged 10y cash UaymCut ~ % cc0iSon
.be dollar Absolutely surrender the capital
sum Of upWarts 0f 100000. and pend
,ng redemption would Surreuiet
,um OF upAard, of $4,000 per
,nnum in intcres' a. compared W''h
he amou8t row payable under the
terms Of the bonds without reckoning
IN anv way q increased rates payable on
nc 1870 bonds from January |, 1852. The
foigl capital Of the who.c debt 20 De pro-
yiGed Tor by the Sra'e would thus be
brought 70 aoout S230O0.0c0, or $1,000 900
below the limit OF S2j.0J0.G0O required rs
ne terms Of the resolution Of thc joint
commlltce Of The 9th Of Way, II the bDads
Gcld by the Sinking Fun and B1prd oi
Pubic u Orbs should be Cancelled. ThcS-lie
NAV by yrCcNa5ishug ber credit contidrnliy
0ok 10 being able. utter very few ytar', 10
raise anew lean. ii de,inng to DO 80, >alii-
lent 10 redeem The 3 per cent. and y per
ceut. bonds at The rrdCccd rat on terra,
which, Fl om fir1ncial point Of view, viii
give a further bencii; 10 the state.
Q. The details for carrying out this ar-
ranecmen', II accepted, will be the subject
ni discussion a1d ncgotillion wituth i)mt
committee, with every desire on orr pir'
20 meet in every possible way the legiii-
nate requirement, OF the state, wlils' c1n-
efying the b0ndholderS' interests.
EDWARD FnoRNr0N.
=. y. BRATnWAiTE.
HiciH ond, Mdy11, 1881
RICHMOND, Va May T., 1857.
sir Edward Thornton, G.. &. B.. Cj9irmln
Commission Council Foreign B)ndlold-
ers:
Dear Sir,-ThlS subcommittee, repre-
.eutirg The committee on the pan OF the
stale Of Virginia, was directed by said
sommttte 10 advise you gontlene1, repre-
,enting the Council OF Foreign Bon1hOid.
ers. th,t il cannot recommend to RE Gene.
raj Assembly OF Virginia the Acceptance OF
sour proposition "a contained In NOuf
communication and memorandum OF to-
day. Indeed, ii is the sense oil the Joint
committee thst il is useless to report The
proposiliOn-becau
Flrst. Taking the Indebtedness ot The
state, inclusive Of tie bonds held by schools
and colleges. and exclusive Of the bonds
Geld by the state other than the Literary
Fund, and, after doductlng t"o thirds.
Virginia's portion Of the debt due the
Cniitd States. Ve find. by applying h8ure'
% your proposition, thai the whole deh'
Il Nir.inia for which we would have to
provide interest annually in round mum
1ers 10 be the sum OF S32, ,0OO,0OO; The an
nual interest upon which, ut the rates you
nane, would equal the sum OF SJ21,OJJ
We zee no way by which the STATE, In her
IMPOVERISHED condition. can ply such
A large annual interest. To attempt
do so would be worse thrn folly.
In the first place. 1t would require an ~
crease Of taxes or a reduction oi the
amount Constitutional mInlmum) which
The state now supplies for the maintenance
of her free schools. The committee can %
neither but permit us to say that II we felt
% inclined settlement requiring the IN
cresse Of the one or the reduction OF the
other would be rejected by The people. ln
tie tocond place, II We neither Increased
taxes nor reduced our appropriations 10
free schools. there would almost lmmedi-
afely be default OF the payment OF The in-
terest sgreed upon; and let Us remind you
tbat these defaults. e the States lnahuity
10 meet ber annually iy-accruiug interest
have been the cause Of all legislation hostile
TO her creditors.
second. We fail to see how you reduce
the principal OF the debt 10 S23, 100000. IL
* true YOU offer to allo@ the State TO re-
deem some OF her obligations al an amount
less than their face value, but after this re-
dpction by no calculation can we reduce
tbe principal below S26, ,0O0,0 900 or therel-
bouts. We have c0nscientlously given
Won what we honestly believe to bs our aa.
uual revenues applicable TO the payment OF
interest on our public debt, and sgaln ex'
press an earnest desie 10 make settie-